Study On The System Of Capital Control In Present China

With the obvious trend of economic globalization and reforms and development of China's economy, economic situation in China and abroad is becoming more and more complicated and changeable, and the system of capital control in China faces more pressure and challenge. As the capital control system in China concerns much about stability and safety of China's economy, we shall keep on improving the capital control system in order to meet the demand of economy development of China. At first, this article introduces several important concepts and theories relating to Capital Control, and analyzes positive functions of Capital Control in reducing financial risks, maintaining balance of international payments of a country, increasing domestic fortune, optimizing the allocation of productive elements, and protecting relatively weak finance industry. The history of capital system in China is also presented herein. The article studies on the entire system of capital control in China and presents legal opinions on the current system. By summarizing the standard of evaluating efficiency of capital control, the article analyses the current capital control in China, and puts forward with several advises for improving efficiency of capital control in China.This article doesn't intend to advocate the idea of carrying out strict capital control in China, but rather studies on problems that the current capital control system doesn't meet demand of China's economy development in order to improve efficiency of current capital control and make preparation for opening the capital account of China in near future.